NFT is the latest buzz in the world of cryptocurrency and technology. Especially in the field of art, NFT is a completely new dimension using which artwork and other data can be preserved, traded, and authenticated. Some of the examples such as Nyan Cat Meme which was sold in February 2021 for $600,000 . Another such example is Twitter founder Jack Dorsey’s first Tweet which was auctioned for $2.5m.
SO, WHAT IS COMMON BETWEEN THEM?
They don’t exist in physical form but are extremely valuable because of are converted into NFT.
Core principles of Blockchain ( NFT): NFT stands for Non Fungible Token. Before we dive into the depth we need to clarify 3 key concepts based on which NFT functions.
● Objective Values Vs Subjective values.
● Fungible Vs Non-Fungible Assets.
● Definition Of Tokens.
Objective values don’t depend upon belief, perception, preferences, etc. On the other hand, subjective values depend on these factors.
This becomes the reason for fluctuation in the price of NFTs
Fungible Vs Non-Fungible Asset: Fungible Assets are those which can be swapped with other assets while the Non-Fungible Asset stands for those values which can’t be interchanged with equally swappable values.
Definition of tokens: The digital or physical form of goods services, value, or utility. In the case of blockchain or cryptocurrency, tokens are represented as value, stake, toll, currency, ownership, etc. The value of the token comes from the asset it represents. For example Gift Card.
Why do people all over the world are investing in NFT?
NFT uses blockchain technology which has 3 key factors making it unique.
- Decentralization – Data is stored in multiple locations in multiple spaces thus it can’t be controlled by a single party.
- Transparency – Transactions can’t be altered as every ledger can be seen transparently.
- Immutability – Data can’t be changed, forged, or altered which preserves the original value of the token.
People are looking at it as a digital asset for long-term monetary gain and thus investing heavily for it.
HOW NFTS CAN BE USED IN THE FUTURE?
- NFTs find their major use in the Gaming Industry. There are multiple PC games where the skin is changed to give characters different looks.However, there is no specific platform available where the transactions of these can occur digitally. NFTs are a great source an
- Musicians, filmmakers can save it in NFT to save it from copyright infringement and remove intermediate.
- Used for actual assets like a stock compan
HOW NFTS CAN BE USED IN THE FUTURE?
- NFTs find their major use in the Gaming Industry. There are multiple PC games where the skin is changed to give characters different looks. However, there is no specific platform available where the transactions of these can occur digitally. NFTs are a great source an
- Musicians, filmmakers can save it in NFT to save it from copyright infringement and remove intermediate.
- Used for actual assets like a stock company
What are the Challenges with NFT?
Challenging and time-consuming – Creating NFTs involve multiple technical challenges. Apart from it creating NFT is a time-consuming process as well.
Complex UI and UX: – Creating UI and UX involves multiple challenges. The core reason for it is the difficult UI and UX . People who don’t have experience in it will find it tough to figure out how to access the information.
Long Term User: – NFT’s will only give high returns in long term. This is also one of the challenges in the field of NFT.
Access to a blockchain is through a hybrid model. – Although we say blockchain works in a decentralized model for now it should be considered as a hybrid model. We can only access the tokens and cryptocurrency from a platform that is handled by the authority.
However, if you are looking forward to becoming a pioneer in the world of NFT, we can help you. We at Synram Technolab have built projects on blockchain as well as cryptocurrency. Now we are gearing up to help the new startups with the development of platforms like e-commerce for NFT or a marketplace dedicated to NFT for the future. So, if you are the one who likes challenges we are ready to partner with you for the future.
